Version 1.0
December 2025
TLDR – Quick Summary
BITS is a utility-focused reflection token on Base blockchain that automatically rewards holders while powering decentralized compute, gaming, and digital commerce.
🎯 Key Points
- 💰 Reflection Rewards: 1% tax on all transfers, 100% automatically distributed to holders
- 🔧 Real Utility: Powers decentralized compute, gaming platforms, trading marketplace, and Discord tips
- 📊 Tokenomics: 1 billion total supply, 200M initial distribution, 800M locked in 8-year vesting
- 🔒 Security: Fully verified contract on BaseScan, SolidityScan audited, built on OpenZeppelin contracts
- ⚖️ Fair Distribution: Minimal owner privileges, no mint/burn functions, immutable tax rate
- 🚀 Roadmap: Discord bot, compute network, gaming, trading platform — timelines TBD based on funding
📍 Contract Info
- Address:
0xB5a922dd894dD8e5B1AC4a4252F2ECff655663f8 - Blockchain: Base (Ethereum L2)
- Standard: ERC-20
- Decimals: 9
- Website: BITScryptoToken.com
- Twitter: @BITScryptoToken
- Verified: ✅ View on BaseScan
Executive Summary
BITS is a utility-focused reflection token built on the Base blockchain, designed to reward holders through an automatic redistribution mechanism while powering a comprehensive ecosystem of decentralized compute, gaming, and digital commerce. Every transaction incurs a 1% tax that is distributed proportionally to all token holders, incentivizing long-term holding and community growth.
Key Features:
- ✅ 1% tax on all transfers (buy/sell/send)
- ✅ 100% of tax reflected to holders automatically
- ✅ Fixed supply: 1,000,000,000 BITS (1 billion)
- ✅ 8-year vesting schedule for team allocation
- ✅ Fully verified smart contract
- ✅ Built on OpenZeppelin audited contracts
- ✅ Real utility: Decentralized compute, gaming, trading platform, Discord tips
Contract Address: 0xB5a922dd894dD8e5B1AC4a4252F2ECff655663f8
Blockchain: Base (Ethereum L2)
Token Standard: ERC-20
Decimals: 9
Website: BITScryptoToken.com
Introduction
What is BITS?
BITS is a utility-focused reflection token that automatically rewards holders through a built-in redistribution mechanism. Unlike traditional tokens where holders must stake or participate in liquidity pools to earn rewards, BITS holders earn passive income simply by holding tokens in their wallet. Beyond reflections, BITS serves as the native utility token for decentralized compute networks, gaming platforms, trading marketplaces, and social tipping systems.
Vision
Our vision is to create a fair, transparent, and sustainable token ecosystem that rewards long-term holders while maintaining liquidity and market stability. By implementing a simple yet effective reflection mechanism combined with real-world utility across AI, gaming, and commerce, we aim to build a strong community of committed holders who benefit from both passive rewards and active ecosystem participation.
Core Principles
- Transparency: Fully verified smart contract with open-source code
- Fairness: Proportional reflection distribution to all non-excluded holders
- Security: Built on audited OpenZeppelin contracts
- Sustainability: Long-term vesting schedule prevents market manipulation
- Simplicity: Easy to understand tokenomics with no hidden mechanisms
Utility & Use Cases
BITS is not just a reflection token—it’s designed to be the native utility token for a comprehensive ecosystem spanning decentralized compute, gaming, and digital commerce. The following use cases are planned for development:
1. Decentralized Compute Network
Purpose: Enable distributed computing for AI and other workloads
BITS will serve as the payment and reward token for:
- Distributed Computing: Access to decentralized computing resources
- GPU Network: Participate in and utilize a distributed GPU network
- Compute Rewards: Earn BITS by contributing computing power
- Resource Marketplace: Connect developers with available compute resources
Benefits:
- Democratizes access to computing resources
- Creates a decentralized alternative to centralized providers
- Rewards network participants with BITS tokens
- Enables cost-effective development for smaller projects
2. Gaming & Game Development
Purpose: Native token for gaming ecosystem
BITS will be integrated into:
- In-Game Currency: Primary token for in-game purchases, upgrades, and transactions
- Game Development Platform: Funding and rewards for indie game developers
- Player Rewards: Earn BITS through gameplay, achievements, and competitions
- Cross-Game Economy: Unified currency across multiple games in the ecosystem
Benefits:
- Creates real economic value for gaming achievements
- Enables player-to-player trading
- Supports independent game developers
- Builds a sustainable gaming economy
3. Trading Platform
Purpose: Unified marketplace for physical and virtual items
BITS will power a comprehensive trading platform:
- Physical Items: Trade real-world goods using BITS as payment
- Cross-Asset Trading: Seamless exchange between physical and digital goods
- Escrow Services: Secure transactions with smart contract-based escrow
- Marketplace Fees: Reduced fees for BITS holders
Benefits:
- Single currency for all trading activities
- Lower transaction costs on Base blockchain
- Secure, transparent transactions via smart contracts
- Global accessibility without traditional banking barriers
4. Social & Community Features
Purpose: Enhance community engagement and creator economy
BITS will enable:
- Discord Tips: Tip content creators, moderators, and community members directly in Discord
- Social Rewards: Earn BITS for community participation, content creation, and moderation
- Creator Monetization: Content creators can receive BITS as payment for services
- Community Governance: Use BITS for voting on community decisions (future DAO integration)
Benefits:
- Direct monetization for community contributors
- Seamless tipping without leaving Discord
- Rewards active community members
- Builds stronger, more engaged communities
5. Future Integrations
Additional planned use cases:
- DeFi Integration: Lending, borrowing, and yield farming with BITS
- Staking Mechanisms: Lock BITS for additional rewards and governance rights
- Cross-Chain Bridge: Expand utility across multiple blockchains
- Enterprise Solutions: B2B payment solutions for AI and gaming services
Tokenomics
Supply Distribution
Total Supply: 1,000,000,000 BITS (1 billion)
| Allocation | Amount | Percentage | Status |
|---|---|---|---|
| Initial Distribution | 200,000,000 BITS | 20% | Distributed at launch |
| Vesting Reserve | 800,000,000 BITS | 80% | Locked, 8-year release |
| Total | 1,000,000,000 BITS | 100% | – |
Initial Distribution (200M BITS)
- Purpose: Development, marketing, liquidity provision, and initial operations
- Recipient: Development wallet (immutable, set at deployment)
- Excluded from reflections: Yes (permanently excluded — dev wallet never earns reflections)
Vesting Schedule (800M BITS)
- Total Vesting: 800,000,000 BITS
- Release Rate: 100,000,000 BITS per year
- Duration: 8 years
- Start Date: Contract deployment timestamp
- Mechanism: Linear vesting, claimable annually by owner
Vesting Timeline:
- Year 1: 100M BITS unlock
- Year 2: 100M BITS unlock
- Year 3: 100M BITS unlock
- Year 4: 100M BITS unlock
- Year 5: 100M BITS unlock
- Year 6: 100M BITS unlock
- Year 7: 100M BITS unlock
- Year 8: 100M BITS unlock
Note: Vesting tokens are held in the contract address (excluded from reflections). When claimed, they transfer to the dev wallet (also excluded). Vested tokens never earn reflections — all reflections go to community holders.
Reflection Mechanism
How Reflections Work
BITS implements an automatic reflection mechanism that rewards holders proportionally based on their token balance. Every transaction (buy, sell, or transfer) incurs a 1% tax, and 100% of this tax is distributed to all non-excluded holders automatically. Excluded addresses (dev wallet, contract, LP) do not receive reflections.
Tax Structure
- Tax Rate: 1% on all transfers
- Tax Applies To: Buys, sells, and peer-to-peer transfers
- Tax Exemptions:
- Transfers involving the contract address (vesting claims only)
- Note: Dev wallet transfers ARE taxed like everyone else
Reflection Distribution
- Automatic: No staking, claiming, or additional actions required
- Proportional: Larger holders receive proportionally larger rewards
- Real-time: Reflections are applied instantly with each transaction
- Transparent: All reflection data is publicly viewable on-chain
Example
If you hold 1% of the circulating supply:
- You receive 1% of all reflection rewards
- As more transactions occur, your balance increases automatically
- No gas fees required to claim (reflections are automatic)
Security & Transparency
Security Measures
- OpenZeppelin Contracts: Built on audited, battle-tested contracts
- Immutable Configuration: Critical parameters cannot be changed
- No Mint Function: Total supply is fixed at deployment
- No Burn Function: Supply cannot be reduced
- Minimal Owner Privileges: Owner can only exclude addresses and claim vesting
- No Hidden Functions: All code is visible and verified
Contract Verification
- Status: ✅ Fully verified on BaseScan
- Verification Type: Exact match
- Source Code: Publicly available
- Link: BaseScan Contract
Security Audits
SolidityScan Automated Audit
Report: View Full Report
| Severity | Count | Status |
|---|---|---|
| Critical | 0 | ✅ None |
| High | 0 | ✅ None |
| Medium | 1 | ⚠️ By Design |
| Low | 4 | ℹ️ Acknowledged |
| Informational | 14 | ℹ️ Documentation |
| Gas Optimizations | 15 | ℹ️ Future consideration |
Conclusion: No critical or high severity vulnerabilities found. Contract is safe for production use.
Governance
Current Governance Model
BITS currently operates under a minimal governance model with the following owner privileges:
- Exclude Addresses from Rewards: Can exclude addresses (e.g., LP pairs) from earning reflections
- One-way operation (cannot be undone)
- Transparent and verifiable on-chain
- Claim Vesting: Can claim unlocked vesting tokens annually
- Time-locked (cannot claim early)
- Transparent schedule
- Publicly trackable
Governance Limitations
Owner CANNOT:
- Change tax rate (immutable constant)
- Mint new tokens (no mint function)
- Burn tokens (no burn function)
- Change total supply (immutable)
- Change dev wallet (immutable)
- Modify vesting schedule (immutable)
- Pause transfers (no pause function)
- Freeze accounts (no freeze function)
- Withdraw tokens from holders (no such function)
Roadmap
Phase 1: Launch ✅
- ✅ Smart contract development
- ✅ Security review
- ✅ Contract deployment on Base
- ✅ Contract verification on BaseScan
- ✅ Initial liquidity provision
- ✅ LP exclusion from reflections
Phase 2: Growth
- ⬜ Community building
- ⬜ Marketing and awareness
- ⬜ DEX listings
- ⬜ LP token locking
- ⬜ Documentation and resources
- ⬜ Discord tipping bot integration
- ⬜ Basic trading platform launch
- ⬜ Community rewards program
Phase 3: Expansion
- ⬜ Exchange listings (CEX)
- ⬜ Partnerships
- ⬜ Decentralized compute network development
- ⬜ Gaming platform integration
- ⬜ Enhanced trading features (physical + virtual items)
- ⬜ Community governance exploration
- ⬜ Ecosystem expansion
Phase 4: Long-term
- ⬜ Full ecosystem integration
- ⬜ Advanced DeFi features
- ⬜ Cross-chain expansion
- ⬜ Enterprise solutions (B2B)
- ⬜ Advanced compute marketplace
- ⬜ Multi-game economy expansion
- ⬜ Community-driven development
Note: Timelines depend on funding and community growth.
Risk Considerations
Market Risks
- Volatility: Cryptocurrency markets are highly volatile
- Liquidity: Low liquidity may result in price slippage
- Market Conditions: Overall market sentiment affects all tokens
Technical Risks
- Smart Contract Risk: While built on audited contracts, smart contracts carry inherent risks
- Reflection Math: Complex reflection calculations may have edge cases
- Gas Costs: High gas costs on Ethereum L1 (mitigated by using Base L2)
Disclaimer
This whitepaper is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research (DYOR) and only invest what you can afford to lose.
Conclusion
BITS represents a transparent, fair, and sustainable approach to reflection tokens with real-world utility. With its simple tokenomics, automatic reward distribution, long-term vesting schedule, and comprehensive ecosystem spanning decentralized compute, gaming, and digital commerce, BITS aims to build a strong community of committed holders who benefit from both passive rewards and active ecosystem participation.
Key Advantages:
- ✅ Simple and transparent tokenomics
- ✅ Automatic passive rewards for holders
- ✅ Long-term vesting prevents market manipulation
- ✅ Fully verified and audited contract code
- ✅ Built on secure Base blockchain
- ✅ Minimal owner privileges
- ✅ Real utility: Decentralized compute, gaming, trading platform, Discord tips
- ✅ Comprehensive ecosystem development roadmap
Join the BITS Community
- Website: BITScryptoToken.com
- Twitter: @BITScryptoToken
- Contract:
0xB5a922dd894dD8e5B1AC4a4252F2ECff655663f8 - BaseScan: View Contract
- Blockchain: Base (Ethereum L2)
Document Version: 1.0
Last Updated: December 2025
Status: Active
This whitepaper may be updated periodically. Please refer to the latest version for current information.
